Namibia: Tobacco Farm Eyes Chinese Market

Source from:  The Namibian  01/24/2014

A PLANNED large-scale tobacco farm in Katima Mulilo in the Zambezi Region is eyeing China as its main export destination, documents obtained by The Namibian revealed. The project has already been granted Export Processing Zone status.

An Environment Impact Assessment (EIA) to determine the feasibility of the project, owned by Chinese investors through the Namibia Oriental Tobacco, is currently being undertaken by Windhoek-based Geo Pollution Technologies.

"We are currently only focussing on the trials that we have planted in Katima. So far the trails look very positive and we should conclude this phase by April this year. At this stage it is a bit premature to make any conclusions of the way forward since the end result of the tobacco trials first need to be determined and along with this there are still many factors at play that could influence the way forward," Jacques Coetzer, one of the officials working on establishing the farm said in an interview.

Namibia Oriental plans full production on 10 000 hectares.

This scale of tobacco production is expected to provide jobs to an estimated 3 000 workers (25% permanent and 75% seasonal). Water for irrigating the farm will be sourced from the Zambezi River.

Namibia Oriental Tobacco is a closed corporation registered in 2005.

It is the sole agency for the Hongyunhonghe Tobacco (Group) Co for tobacco products in the African market.

Hongyunhonghe Tobacco is a Chinese state-owned enterprise and is currently China's largest and Asia's top cigarette producer as well as the world's fifth largest tobacco company.

During 1995 to 1997 trials in tobacco production in Namibia's Omaheke, Oshikoto, Otjozondjupa, Okavango and Omusati Regions were conducted. The trials showed that tobacco is a very profitable option with income of N$7 935 per hectare compared to maize with N$1 275 per hectare, cotton with N$2 200 per hectare and mahangu on N$420 per hectare.

Namibia Oriental says since tobacco has much higher profit margins than other crops, it may be a feasible alternative to crop production in the Zambezi Region.

"The Zambezi Region has comparable climatic conditions to Zimbabwe and a trial period of nine years on the Katima Farm saw production of tobacco in the range of 3 500 to 4 500 kilogrammes per hectare with a comparable quality to the best tobacco produced in Zimbabwe," the company says.

The tobacco will be transported by road to Walvis Bay for export to China. Enditem